How might plant managers manipulate their quarterly estimates of percentage of completion of ending WIP inventory? Why might it be to their advantage to do so? What are their incentives to misreport the percentage of completion of ending WIP inventory for each of direct materials and conversion? (Hint: think about the cost per equivalent unit calculation and how the estimate of percentage complete of ending WIP inventory is connected to that calculation).

The state in which the manufacturing company you work for is located regulates the presence of a particular substance in the environment to concentrations ≤ x. recently-released, reliable research endorsed by the responsible federal agency conclusively demonstrates that the substance poses no risks at concentrations up to 5x. your company has asked you to consider designing a new process with a waste discharge stream containing up to 2x of the substance. based on the stated conditions, describe this possible.